GTAP Resources: Resource Display
| GTAP Resource #7549 |
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"Navigating the trade-climate nexus for a carbon neutral economy" by Dellink, Rob, Yuko Ishibashi and Shunta Yamaguchi Abstract Trade and climate change are linked in a complex ways. Better insights into how the two are connected can help improve both trade policy and climate policy and ensure more effective outcomes. This paper includes deep-dive analyses into key issues that shape, and in turn are shaped by, the linkages between trade and climate change. These include issues related to (i) carbon leakage, (ii) the prospects for international markets for clean hydrogen, and (iii) projecting future trade patterns in the transition to carbon neutral economy. The assessment of carbon leakage shows that on average, leakage rates have been found to be quite limited. But with the recent ramp-up of policies in many countries this may change, and certain sectors are more vulnerable than others. Clean hydrogen can play a significant role in the transition to a carbon neutral economy, but this requires a massive increase in the associated trade flows, which is limited by a number of trade barriers. Even without new policies future trade patterns will change over time, reflecting structural change of the global economy towards services. The low-carbon transition will further encourage this, and lead to very significant changes in energy trade. Changes in trade patterns for energy-intensive industry are not as straightforward, as these are affected on the one hand by a reduction in global supply and demand but on the other hand by increased exports by the most efficient producers. Finally, the paper shows that a significant part of the total cost of the transition to a carbon neutral economy comes from the policies implemented abroad. |
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- Climate change policy - Trade and the environment - Not Applicable |
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Public Access No documents have been attached. Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
